Pension Calls Ralcorp's AIPC Share Buy A 'Sham'

Law360, New York (June 30, 2010, 4:14 PM EDT) -- A Pennsylvania public employee retirement group has called Ralcorp Holdings Inc.'s planned $1.2 billion purchase of American Italian Pasta Co. a “sham transaction” in the latest putative class action lawsuit seeking to put a halt to the stock deal.

A so-called top-up option through which Ralcorp can acquire a massive number of American Italian Pasta shares after completion of a first-step tender offer is invalid under Delaware law, according to the Erie County Employees Retirement System's complaint, filed Tuesday in the Court of Chancery of the...
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